FIRST NATIONS FISCAL AND STATISTICAL MANAGEMENT ACTFirst Nations Taxation Enforcement RegulationsP.C.2007-1668200711
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Her Excellency the Governor General in Council, on the recommendation of the Minister of Indian Affairs and Northern Development, pursuant to paragraph 5(1)(e), subsection 5(7) and paragraph 36(1)(a) of the First Nations Fiscal and Statistical Management Acta, hereby makes the annexed First Nations Taxation Enforcement Regulations.S.C. 2005, c. 9InterpretationDefinitionsThe following definitions apply in these Regulations.Act means the First Nations Fiscal Management Act. (Loi)debtor means a person who is liable for unpaid taxes, interest or penalties imposed under a property taxation law. (débiteur)taxable property means reserve land, an interest in reserve lands, or a right to occupy, possess or use reserve lands, that is subject to taxation under a property taxation law. (bien imposable)tax administrator means the person responsible for the administration of a first nation’s property taxation laws. (administrateur fiscal)tax roll means a list of persons liable to pay tax on taxable property. (rôle d’imposition)SOR/2016-29, s. 20Applicable Conditions and ProceduresConditionsEnforcement measures set out in a property taxation law are subject to the conditions, and shall be carried out in accordance with the procedures, prescribed in sections 3 to 22.Copies of noticesCopies of notices referred to in these Regulations shall be deliveredif the notice is in respect of taxable property, to all persons named on the tax roll in respect of that taxable property; andif the notice is in respect of personal property, to all holders of security interests in the personal property registered under the laws of the province in which the personal property is located.Recovery of interest and penaltiesA property taxation law that provides for the imposition of interest or a penalty in respect of unpaid taxes shall include the rate of interest and the manner in which the amount of the penalty is calculated, as the case may be.Maximum rate of interestThe rate of interest on unpaid taxes shall not exceed 15% per year.Total penaltiesThe total of any penalties imposed in respect of unpaid taxes shall not exceed 10% of the amount of the unpaid taxes.Tax arrears certificateBefore taking any enforcement measures referred to in sections 9 to 21, a tax administrator shall issue a tax arrears certificate and deliver it to every person named on the tax roll in respect of the property, at the address indicated on the tax roll.LimitationA tax arrears certificate shall not be issued for at least six months after the day on which the taxes became due.SOR/2016-29, s. 21Content of certificateA tax arrears certificate shall include a description of the taxable property and set outthe amount of unpaid taxes;the amount of any penalty incurred and of any future penalty to which the debtor may become liable;the amount of any interest payable to date and the rate of any interest payable in the future on the unpaid taxes; andthe date, if any, by which all amounts owing may be paid without incurring further interest and penalties.SOR/2016-29, s. 22LiensList of liensThe tax administrator shall maintain a list of all liens created under a property taxation law.Manner of dischargeA property taxation law that provides for the creation of a lien shall set out the manner in which the lien may be discharged.Registration of dischargeOn receiving payment of the taxes, interest and penalties in respect of which a lien was created, the tax administrator shall register a discharge of the lien without delay.Assignment of Taxable PropertyNotice of seizureIf a property taxation law provides for the seizure and assignment of taxable property for unpaid taxes, interest or penalties, and taxes, interest or penalties remain unpaid more than nine months after a tax arrears certificate was issued, the tax administrator may deliver to the debtor a notice describing the proceedings — referred to in sections 10 to 16 — that may be taken in respect of the taxable property if the amounts owing are not paid.Timing of saleSubject to subsections 15(1) and (3), not less than six months after delivery to the debtor of the notice referred to in section 9, a right to an assignment of the taxable property may be sold by public tender or auction.Notice of saleA notice of the sale by public tender or auction shall be published in the local newspaper with the largest circulation at least once in each of the four weeks preceding the date of the sale, and shall be posted in a prominent place on the reserve not less than 10 days before that date.Content of noticeA notice of public tender or auction shall set out the upset price and any conditions that are attached to the acceptance of a bid.Upset priceThe upset price shall not be less than the total of the amount of taxes, interest and penalties payable, calculated to the end of the redemption period described in subsection 14(1), plus 5% of that total.Purchase by first nationIf no bid is equal to or greater than the upset price, the first nation is deemed to have purchased the right to an assignment of the taxable property for the amount of the upset price.Notification of MinisterThe tax administrator shall without delay notify the Minister in writing of the sale of a right to an assignment of taxable property that has been made in accordance with these Regulations.Redemption periodWithin three months after the holding of a public tender or auction in respect of taxable property, the debtor may redeem the taxable property by paying to the first nation the amount of the upset price plus 3%.Repayment and noticeOn redemption of the taxable propertyif the right to an assignment was sold to a bidder in accordance with section 10, the first nation shall without delay repay to that bidder the amount of the bid; andthe tax administrator shall notify the Minister in writing of the redemption.Effective date of assignmentNo assignment of the taxable property shall be made until the end of the redemption period described in subsection 14(1).Assignment of taxable propertySubject to subsection (3), at the end of the redemption period, the first nation shall assign the taxable property to the highest bidder in the public tender or auction held under subsection 10(1), or to itself as the deemed purchaser under section 12.Restriction on assignmentTaxable property shall not be assigned to any person or entity that would not have been entitled under the Indian Act or the First Nations Land Management Act, as the case may be, to obtain the interest or right constituting the taxable property.Registration of assignmentThe tax administrator shall register an assignment of any taxable property assigned in accordance with these Regulations in every registry in which the taxable property is registered at the time of the assignment.Proceeds of saleAt the end of the redemption period, the proceeds from the sale of a right to assignment of taxable property shall be paid to any holders of registered interests in the property and to the first nation in order of their priority at law, and any remaining proceeds shall be paid to the debtor.Seizure and Sale of Personal PropertyNotice of seizureIf a property taxation law provides for the seizure and sale of personal property to pay for unpaid taxes, interest or penalties, and taxes, interest or penalties remain unpaid more than 30 days after a tax arrears certificate was delivered to the debtor, the tax administrator may deliver to the debtor a notice of seizure and sale in respect of any personal property of the debtor that is located on the reserve.Limitation on seizurePersonal property of a debtor that would be exempt from seizure under a writ of execution issued by a superior court of the province in which the property is located is exempt from seizure under a property taxation law.Content of noticeA notice of seizure and sale of personal property shall state thatif, within seven days after delivery of the notice, the debtor does not pay the unpaid taxes, interest and penalties, the tax administrator may seize the personal property described in the notice; andif the debtor does not pay the unpaid taxes, interest and penalties and the cost of seizure of the property, the tax administrator may sell the seized personal property at any time after the publication requirements of section 18 have been met.Timing of seizureSubject to subsection (2), if the taxes, interest and penalties remain unpaid more than seven days after delivery of the notice of seizure and sale of the personal property, the tax administrator may request a sheriff, bailiff or by-law enforcement officer to seize any personal property described in the notice that is in the possession of the debtor and is located on the reserve.Receipt for personal propertyThe person who seizes personal property shall provide to the debtor a receipt for the personal property seized.Conduct of saleA sale of personal property shall be by public auction.Publication of noticeThe tax administrator shall publish a notice of the sale by auction of the personal property in two consecutive issues of the local newspaper with the largest circulation.Waiting periodThe first publication of the notice shall not occur until at least 60 days after the personal property was seized.Sale by auctionSubject to subsection (5), at any time after the second publication of the notice, the seized property may be sold by auction.Court challengeIf at any time before the seized property is sold a challenge to the seizure is made to a court of competent jurisdiction, the sale shall be postponed until after the court rules on the challenge.LimitationThe application of sections 17 and 18 in respect of personal property subject to a registered security interest is subject to any laws regarding the seizure and sale of such property in the province in which the property is located.Proceeds of saleThe proceeds from the sale of seized personal property shall be paid to any holders of registered security interests in the property and to the first nation in order of their priority under the laws applicable in the province in which the property was seized, and any remaining proceeds shall be paid to the debtor.Discontinuance of ServicesPreconditionsSubject to subsections (2) and (3), a first nation may discontinue a service that it provides to the taxable property of a debtor ifrevenues from a property taxation law are used to provide that service to taxpayers;the property taxation law provides for the discontinuance of services to the taxable property for unpaid taxes, interest or penalties; andtaxes, interest or penalties remain unpaid by a debtor more than 30 days after a tax arrears certificate was delivered to the debtor.Essential servicesA first nation shall not discontinuefire protection or police services to the taxable property of a debtor;water or garbage collection services to taxable property that is a residential dwelling; orelectrical or natural gas services to taxable property that is a residential dwelling during the period from November 1 in any year to March 31 in the following year.30-day noticeAt least 30 days before discontinuing any service, the tax administrator shall deliver to the debtor a notice of discontinuance specifying each service provided to the taxable property that is to be discontinued and the projected date of discontinuance.Delivery of DocumentsMethods of deliveryDelivery of a document may be made personally or by sending it by registered mail.Personal deliveryPersonal delivery of a document is madein the case of an individual, by leaving the document with that individual or with a person at least 18 years of age residing at that individual’s place of residence;in the case of a first nation, by leaving the document with the individual apparently in charge, at the time of delivery, of the main administrative office of the first nation, or with the first nation’s legal counsel; andin the case of a corporation, by leaving the document with the individual apparently in charge, at the time of delivery, of its head office or one of its branch offices, or with an officer or director of the corporation or the corporation’s legal counsel.Time of deliveryA document shall be considered to have been deliveredif delivered personally, on the day that personal delivery is made; andif sent by registered mail, on the fifth day after it is mailed.Coming into ForceComing into forceThese Regulations come into force on the day on which they are registered.